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Which of the following scenarios would represent the greatest threat to the authority of the internal audit activity (IAA)?
Which of the following scenarios would represent the greatest threat to the authority of the internal audit activity (IAA)?A . A change was implemented requiring the IAA to report administratively to the organization's chief legal counsel rather than the board.B . Responsibility for risk management processes were removed from the...
Which of the following would most likely be considered a red flag for fraud?
Which of the following would most likely be considered a red flag for fraud?A . An organization lacks a whistleblower hotline for reporting suspicious activity.B . A senior manager has been delegating the authority to sign-off on small dollar amount purchases to a subordinate.C . An employee in charge of...
Which of the following would be considered a preventive control?
Which of the following would be considered a preventive control?A . A library control log.B . A review of exception reports.C . A password lock on a server.D . A software scan of financial records for irregularities.View AnswerAnswer: C
According to IIA guidance, which of the following individuals would best be considered independent for the purpose of participating in an external assessment of the quality assurance and improvement program for an internal audit activity (IAA)?
According to IIA guidance, which of the following individuals would best be considered independent for the purpose of participating in an external assessment of the quality assurance and improvement program for an internal audit activity (IAA)? A. A former employee knowledgeable of the IAA who resigned three years earlier from...
Cost of the engagement versus the potential benefits.
Cost of the engagement versus the potential benefits.A . 1 and 4 onlyB . 2 and 3 onlyC . 2, 3, and 4 onlyD . 1, 2, 3, and 4View AnswerAnswer: C
Which of the following conditions is the most likely indicator of fraud?
Which of the following conditions is the most likely indicator of fraud?A . Commissions are paid based on verified increases to sales.B . Departmental reports are consistently issued in an untimely manner.C . A manager regularly assumes subordinates' duties.D . Lower earnings occur during the industry's down cycle.View AnswerAnswer: C
Which of the following statements is true about the auditor's actions?
A staff auditor, nearly finished with an audit engagement, discovers that the director of marketing has a gambling habit. The gambling issue is not directly related to the existing engagement, and there is pressure to complete the current engagement. The auditor notes the problem and forwards the information to the...
According to IIA guidance, which of the following actions would best help the CAE reach this objective?
A new chief audit executive (CAE) of a large internal audit activity (IAA) is dissatisfied with the current amount and quality of training being provided to the staff and wishes to implement improvements. According to IIA guidance, which of the following actions would best help the CAE reach this objective?A...
Which of the following best ensures an internal audit activity has the ability to render impartial and unbiased assessments?
Which of the following best ensures an internal audit activity has the ability to render impartial and unbiased assessments?A . Organizational status and objectivity.B . Supervision of the chief audit executive (CAE) by senior management.C . Organizational knowledge and skills.D . CAE certification.View AnswerAnswer: A
An internal auditor notes that employees are able to download files from the internet. According to IIA guidance, which of the following strategies would best protect the organization from the risk of copyright infringement and licensing violations resulting from this practice?
An internal auditor notes that employees are able to download files from the internet. According to IIA guidance, which of the following strategies would best protect the organization from the risk of copyright infringement and licensing violations resulting from this practice?A . Apply antivirus and patch management software.B . Utilize...
